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New Research by the Food SCENE Group

Supermarkets Expanding throughout Africa: Why is there a desert in Detroit?

Numerous studies have affirmed the work by the Food SCENE group that supermarkets are making positive returns in some of the poorest nations and neighborhoods in the world. Therefore it is important to understand why there are so many food deserts throughout the U.S. This topic is being addressed by the Food SCENE Group.

NAFTA and it’s Impact on the Environment

South Carolina State, North Dakota State and The Food SCENE group have teamed up to research the impact NAFTA has had on the Environment in the U.S., Canada and Mexico. Specifically we assess the changes in the vegetable industry, carbon emissions, trade flows and the competitiveness of the industry.

Increasing levels of industrialization and concentration of organic agriculture: a benefit or cost to society?

This research focuses on the effects of large food retailer/manufacturers on the organic food supply chain in the United States. The increasing levels of industrialization and concentration in organic agriculture have important implications on all organic supply chain participants. This is an important issue because for many years organic food production has been associated with: small scale farmers, support for local farmers, premium prices and the highest environmental and quality standards possible. Since sustainability is a fundamental value of the organic movement; therefore the question that remains is whether or not the large agribusiness corporations will be able to uphold these values. By conducting a survey, Kudzai’s research seeks to estimate the potential benefits or costs to society of these recent developments and to inform supply chain players; farmer, environmental and policy advocacy groups of the policy implications of the increasing participation of the large retailer/manufacturers in the organic supply chain.

Ethanol versus Food Security for the Poor, The South African Case

This research focuses on the effects of ethanol expansion on food markets and food consumption patterns in South Africa and the United States. Recent expansion of ethanol production has led to the diversion of crops traditionally for food away from food markets as they have increasingly been used as feedstock for ethanol production. This has implications for food supply chains and food markets domestically and globally. Using national data sets on food supply and demand, Athur’s research seeks to estimate the effects of these recent developments and establish resulting policy implications to inform policy at both national and global levels.

Sustainability of Innovation in the Carbonated Soft Drink Indsutry

This current research focuses on the effects of sustainable innovation and market acceptance on consumer demand in the carbonated soft drink (CSD) industry for the United States. Given the importance of the CSD industry to the retail grocery sector, Marcus seeks to find out just how important are new product introductions to the CSD industry. Using national data on top selling CSD products and national data on new product introductions in the CSD industry, Marcus will find out exactly how quickly do consumers buy in to new product introduction and is demand for these products sustainable over time. This has implications to both consumer demand and firm sustainability.

Reforming Trade Policy: The Case of the EU and the Namibian Beef Sector

This research focuses on the trade policy reforms of the European Union with African Caribbean and Pacific (ACP) countries. The trade policy reforms entails a transition from the historical non-reciprocal preferential market access of ACP countries into the EU market toward a new trading regime that is compatible with WTO rules (i.e. requires reciprocal free trade arrangement). Uncertainty regarding the economic effects of the proposed trading regime, called the Economic Partnership Agreements, abounds. Ms. Katjiuongua’s research focuses on the potential effects of EU trade policy reforms on Namibia’s beef sector. Namibia exports almost 50% of its beef duty free into the EU market under the beef protocol of the old trading regime. The proposed trade policy has profound implications for various actors throughout Namibia’s beef supply chain. Using primary data and secondary trade data Katjiuongua’s research will estimate the potential economic impact of EU trade policy reforms on Namibia’s beef industry.

Completed Research by the Food SCENE Group

Designing the Last Mile of the Supply Chain in Africa: Firm Expansion and Managerial Inferences from a Grocer Model of Location Decisions

Dave Weatherspoon and Anthony Ross, International Food and Agribusiness Management Review, Volume 11, Issue 1, 2008

Abstract

The recent interest in the expansion of retail food chains and the perceived problems resulting from competition between these new, sophisticated supply chains and the most basic of food distribution networks in emerging economies have been greatly debated in the literature. This paper is a seminal approach to examining South-South food firm (grocer) foreign direct investment by incorporating data on the informal market into a facility location decision model. There are unique environmental complexities that developing/transitioning economies present. The unique finding of this model is that informal employment patterns, in both Agricultural and non-Agricultural sectors, influence the firm’s location. Given the absence of data, South-South foreign direct investment managers perceive avid market transactions as indicators of demand and potential supply availability in formal and informal sectors. For example, Pick n’ Pay’s CEO stated recently that their growth in the Southern Africa supermarket business is a direct result of the informal market converting to the formal market.

What Adds Value in Specialty Coffee? Managerial Implications from Hedonic Price Analysis of Central and South American E-Auctions

M. Laura Donnet, Dave D. Weatherspoon, and John P. Hoehn, International Food and Agribusiness Management Review, Volume 10, Issue 3, 2007

Abstract

We analyze price and quality information at the procurement level in the specialty coffee supply chain using data from small and large volume e-auctions. Hedonic price equations reveal that the Cup of Excellence auction is a more differentiated market disclosing more information about coffee values associated with ratings, rankings, quantities available, and country reputations whereas information in the Q auction is more limited and tends to be remunerated to a lesser extent. These results indicate that there are different business models and valuation of product characteristics within the specialty coffee industry. Management implications are drawn for specialty coffee producers and roasters.

South Africa’s Black Economic Empowerment Program: Who Wins and Looses in the Food Supply Chain?

(MSU Thesis - 2008)

This research focuses on the potential economic effects of South Africa’s Agriculture Broad Based Black Economic Empowerment Policy (AgriBEE) on the fresh produce sector in South Africa. In her analysis Kudzai focuses on the preferential procurement aspect of the policy. An international trade tool, (the domestic content policy) was adapted to analyze a domestic issue (AgriBEE policy) in the context of a single dualistic economy composed of previously disadvantaged farmers and large-scale commercial farmers. National data on selected vegetables in South Africa, is used to identify which parties are likely to benefit from this policy and those that are likely to bear the cost of this policy as well as providing estimates of the potential costs and benefits of the policy to the South African society.

After 27 years of War, How to Build Sustainable Food Supply Chains: The Case of Angola

(MSU Thesis - 2008)

The decline in agricultural output over the years and the subsequent pervasive food crisis in most of sub-Saharan Africa have motivated governments and international organizations to develop a variety of strategies, policy alternatives and programs aimed at promoting agricultural production and food security. Many of these strategies have been conceived and implemented by international organizations, and in some cases the strategies fail to address the root cause of failure of the agricultural sector to perform to its potential. Angola is one of those countries that after 27 years of war is in dire need of a strategy that addresses all capital constraints and future economic growth needs. Although rich with minerals (7th largest producer of oil and has a major diamond industry) approximately 71% of its Angolans are directly or indirectly dependent on the agricultural sector for their livelihood. This begs the question, “what strategic options are most appropriate for the agri-food supply chain development for Angola over the next five years?” We adapt a methodology used in Industry Strategic Planning and Coordination and the Technological Demands Determination by Prospective Analysis and apply it at the country-wide level to answer this question.